Store shelf or own website: contribution per serum in each channel
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The prompt
Lumora (fictional) can sell its USD 60 serum through the specialty retailer (it receives USD 33) or on its own website at the full USD 60. Making the serum costs USD 8.58 either way. On the website, delivery and packing cost USD 6 per order, payment fees are 3 percent of the price, and online advertising costs USD 15 for each order it wins. Which channel leaves more per serum before shared costs, and what happens if the advertising cost per order rises to USD 25?
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